Tech Mahindra's first-quarter net profit increased by 39% to Rs. 1,353 crore.

Will hire new employees from Tier-II cities

Tech Mahindra reported a 39% year-on-year growth in earnings after tax to 1,353 crores on Thursday, up from 972 crores at the same time last year. Profit increased by 25% from one quarter to the next.

Revenue from operations increased 12% year on year to 10,198 crores (9,106 crores). It increased by 4.8% sequentially from $9,729 crore in Q4FY21.

The attrition rate remained elevated at 17%, up from 13% in the March 2021 quarter. The total number of employees was 126,263, with 5,209 new hires in the first quarter.

“In FY22, our focus will be on employing fresh talent across our technology verticals, including AI, IoT, Deeptech, and Spacetech,” stated CP Gurnani, Managing Director and CEO of Tech Mahindra. Fresher intake will increase threefold.”

“The hiring would primarily take place in India, particularly in Tier-II towns like Visakhapatnam, Thiruvanathapuram, and Nagpur,” he added.

Significant transactions

Gurnani stated that the company had a lot of big deals come in throughout the quarter. This included a signed agreement as a managed service partner for technology transformation with one of the leading private healthcare organizations in the United States. In addition, for customer experience management, the organization will collaborate with a significant BPO in the United Kingdom.

For the quarter, total net new business wins were $815 million. Communications, Media, and Entertainment accounted for approximately 40% of total sales, increasing 12.6% year on year. Manufacturing generated 16.5 percent of overall revenue, while BFSI contributed 16.4 percent.

The largest market

America was the largest market, accounting for 46.7% of revenue, followed by Europe (27.2%) and the rest of the world (26.1%).

“We had a strong overall performance this quarter, with growth in all of our main markets and industry sectors. As we assist our customers with integrated digital transformation, we continue to see significant traction in large transaction wins. With TechM Next, we focus on essential technology pillars while taking an experience-led approach. “We will be able to capitalize on the tremendous demand momentum right now,” Gurnani said.

“We continue to build on our profitability journey and have generated our highest ever quarterly sales and profit after tax this quarter,” said Milind Kulkarni, Chief Financial Officer at Tech Mahindra. As we strive to leverage on the incremental digital investments throughout the course of the year, delivery excellence will be a cornerstone in enhancing our operational and financial metrics.”